Muhtar made the disclosure on at the weekend in Minna at the ongoing retreat for Secretaries to the State Governments (SSGs).
He said the amount was N60 billion higher than the money spent on capital projects in the same year.
The minister said the federal government spent about N580 billion on developmental projects such as education, health, road and infrastructure compared to N640 billion it spent on subsidy.
He said government was concerned about the amount of resources being spent on petroleum products subsidy, especially when the subsidy did not reach the intended beneficiaries.
“If we are subsidising petrol to be sold at N65 per litre but it’s rarely available at that price. It is at the old price of N70 per litre to N90 per litres, who is pocketing the difference?’’ he said.
Muhtar said the government was set to improve revenue from revenue generating ministries and departments through the process of audit, to effectively block loopholes in the system.
He said the Nigeria Custom Service was being reformed to ensure that all revenues due to the government were properly accounted for.
According to him, a presidential taskforce is at present in place to ensure the reform of the service.
He told the gathering that the federal government had started in earnest power projects through the National Integration Power Projects that was jointly sponsored by the Federal and State Governments.